Pixar Animation Studios reported third-quarter earnings that fell sharply but continued to easily exceed estimates. And, in anticipation of a healthy Christmas shopping season, Pixar raised its forecast for the year.

Pixar, Richmond, Calif., revised its full year 2000 projections to at least $1.45 a diluted share, up from previous projections of $1.30 a diluted share. The company said its release of the home video and DVD of "Toy...